1. What is the Carvana Loan Calculator?

The Carvana Loan Calculator helps estimate monthly payments for car financing through Carvana. It uses the standard loan payment formula adapted for Carvana's specific financing terms.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( Principal \) — Loan amount in dollars
• \( Rate \) — Monthly interest rate (as decimal)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment required to fully repay the loan over its term, including both principal and interest.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan fits within your financial situation before committing to a vehicle purchase.

4. Using the Calculator

Tips: Enter the principal amount (vehicle price minus down payment), Carvana's monthly interest rate (as percentage), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: It provides a close estimate but actual payments may vary slightly based on Carvana's specific terms and any fees.

Q2: What's a typical Carvana interest rate?
A: Rates vary by credit score but typically range from 3% to 15% APR (divide by 12 for monthly rate).

Q3: What loan terms does Carvana offer?
A: Terms usually range from 36 to 72 months, with some qualified buyers eligible for 84-month loans.

Q4: Does this include taxes and fees?
A: No, this calculates principal and interest only. Your actual payment may be higher with taxes and fees.

Q5: Can I estimate with a down payment?
A: Yes, subtract your down payment from the vehicle price to get the principal amount.